Our car experts choose every product we feature. We may earn money from the links on this page.

How Much Is an Electric Car?

Buying a new car is a major purchasing decision, and there are many factors to consider when deciding what vehicle is right for your needs. When electric cars were first introduced into the market, manufacturers designed and marketed them as luxury vehicles to consumers with higher-than-average salaries.

Buying a new car is a major purchasing decision, and there are many factors to consider when deciding what vehicle is right for your needs. When electric cars were first introduced into the market, manufacturers designed and marketed them as luxury vehicles to consumers with higher-than-average salaries.

But with concern about climate change and protecting the environment growing, more manufacturers releasing electric vehicles, and the cost of electric cars dropping, purchasing an electric vehicle is becoming a more realistic option for younger generations and consumers with an average income. Here is what you need to know about the cost of electric cars.

Cost of Electric Cars Compared to Gas-Powered Cars

One of the major cost-saving benefits of having an electric car is the fuel and maintenance savings. Owners of full-electric vehicles don't have to fuel up at the gas pump. According to the U.S. Department of Energy, the cost of fueling an electric vehicle is about half the cost of fueling a gas-powered car, with an electric eGallon costing $1.24 and a gallon of gas costing $2.64 on average. Additionally, Energysage notes that electric vehicles have fewer parts such as oil, spark plugs, and timing belts that you need to regularly replace than a standard combustion engine.

While electric cars are usually still higher in their initial cost than traditional gas-powered vehicles, the amount of money you save in fuel and maintenance over the vehicle's lifetime offsets the higher up-front cost. According to Kelley Blue Book (KBB), the average new car cost in September 2018 in the United States was $35,742. Koch vs. Clean points out that there are 10 all-electric and 13 hybrid plug-in vehicles available in the U.S. for less than the average new car cost.

There is also evidence that suggests the price gap between electric cars and gas-powered cars is closing even more. According to Quartz, the average cost of a new car in June 2019 in the U.S. was $36,600. This was a 2% increase from the year before. However, according to data from Cox Automotive, the average cost of an electric vehicle decreased from $64,300 to $55,600: a 13.4% decrease from the year before. And this drop would be even more pronounced if most manufacturers were not still focusing on making luxury electric vehicles.

Costs of Powering an Electric Car

You can measure the true cost of fueling a gasoline-powered car by the number of miles the car can drive per gallon of gas (miles per gallon or MPG). Because electric cars use power instead of fuel, you can measure the cost of powering an electric vehicle by the number of kilowatt-hours the car gets per 100 miles (kWh/100 miles), says Edmunds. You can find a vehicle's MPG and kWh/100 miles ratings on its EPA fuel economy sticker or in the owner's manual.

When you're considering buying an electric vehicle, you also need to include the cost of purchasing and installing a charging station in your home to determine the true cost of purchasing an electric vehicle. Also, the cost of powering an electric car varies based on where and when you charge it as well as your utility company's rates.

According to Edmunds, electricity costs are more stable than gasoline costs. In the U.S., the national average kilowatt per hour cost is 12.7 cents, only about one cent more than the cost a decade ago. You can find the cost of charging your electric car by multiplying your car's kWh/100 miles by your electric rate. The result tells you the cost of powering your electric vehicle per 100 miles. If your electric rate varies based on the time of day it's in use, use the rate for the time of day you're most likely to charge your car.

Cost of Electric Cars Compared to Hybrid Cars

According to Energysage, the difference between the initial cost of an electric vehicle and a plug-in hybrid vehicle (PHEV) is less clear than the difference between the cost of an electric vehicle and a gas-powered car. Since there are so many manufacturers offering hybrid vehicles in a variety of models, choosing one vehicle to compare to an equivalent electric vehicle would not represent the full market.

While certain PHEVs may have a lower initial cost than a full-electric vehicle, an electric car will still have larger cost savings in the long run, as a PHEV will require you to occasionally fuel up with gasoline, and an electric vehicle does not. Also, compared to full-electric vehicles, PHEVs still have more parts that can require maintenance, repair, and replacement, like engine oil and spark plugs.

How Much Does an Electric Car Cost?

Below are the manufacturer's suggested retail price (MSRP) for several of the leading electric vehicles in the market and their different models:

Tesla Model S

Energysage notes that the Tesla Model S, most closely comparable to the Mercedes Benz CLS Class, is the exception to the trend in electric vehicles costing more than their gas-powered equivalent competitors.

This content is created and maintained by a third party, and imported onto this page to help users provide their email addresses. You may be able to find more information about this and similar content at piano.io

This commenting section is created and maintained by a third party, and imported onto this page. You may be able to find more information on their web site.